A multi-part deal with Brookdale, HCP and Blackstone

Blackstone Real Estate Partners VIII L.P. will purchase HCP, Inc.’s 64 community portfolio for $1.125 billion.

In a separate arrangement, Blackstone and Brookdale Senior Living Inc. will form a joint venture. Blackstone will contribute the portfolio and Brookdale will contribute about $170 million for a 15 percent equity interest. Brookdale will manage the 5,967 units once the transaction is complete, expected early 2017.

“These transactions are meaningful steps in our ongoing portfolio optimization initiative,” said Brookdale President and CEO Andy Smith in a company press release. “Through these transactions, we expect that we will improve our return on invested capital, significantly improve our cash flow, reduce lease leverage and improve the coverage of the remaining HCP leased portfolio.

“We are committed to continuing to pursue other opportunities to optimize our portfolio, simplify our business and create shareholder value.”

Brookdale and HCP have also agreed on a multi-part transaction that includes:

the termination of leases for 29 communities,

the contribution of four communities currently leased by Brookdale to HCP into an existing REIT Investment Diversification and Empowerment Act (RIDEA) joint venture with HCP and

the financing of certain communities owned by the entry fee continuing care retirement community (CCRC) joint venture.

 


Topics: Leadership , Operations